Poland's ZChP to switch half of DAP ferts production to NPK, AS

03 April 2013 15:52  [Source: ICIS news]

LONDON (ICIS)--Poland's Zaklady Chemiczne Police (ZChP) is set to switch around 50% of its diammonium phospate (DAP) fertilizer capacity to nitrogen phosphorus potassium (NPK) and ammonium sulphate (AS) production, a source at parent group Zaklady Azoty Tarnow (ZAT) said on Wednesday.

“DAP pretty much remains unprofitable with expanding global capacity weighing on prices, so the company must aim to change over to more promising fertilizer lines,” he added.

Volatile pricing and poor volumes made the first quarter of this year a tough one for much of ZChP's multi-component fertilizer business, while the company's titanium dioxide (TiO2) and plasticisers units were loss-making in the first three months of the year, the source said.

Recession-hit Europe means little growth is expected for this year by European TiO2 players, market experts have said.

“In terms of market stability, ZAT has that in nitrogen fertilizers, but the market environment for the group's products is generally challenging, with caprolactam/polyamide 6 [or nylon 6] presenting another problem now that we have lower demand from China,” the source added.

Both ZAT and ZChP have started trading under the brand Grupa Azoty, the chosen name of a group that is set to be formalised upon the completion of a merger and consolidation process involving several other companies.

By: Will Conroy
+44 20 8652 3214

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